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Fujitsu Ltd.'s top executive took the unusual step of publicly apologizing for his company's making bids of just 
one yen for several local government projects, while computer rival NEC Corp. made a written apology for indulging
 in the same practice. Meanwhile, business and government leaders rebuked the computer makers, and fretted about 
the broader statement the companies' actions make about Japanese cutthroat pricing. Fujitsu said it bid the 
equivalent of less than a U.S. penny on three separate municipal contracts during the past two years. The company 
also disclosed that during that period it offered 10,000 yen, or about $70, for another contract. But Fujitsu, 
Japan's No. 1 computer maker, isn't alone. NEC, one of its largest domestic competitors, said it bid one yen in 
two separate public auctions since 1987. In both cases, NEC lost the contract to Fujitsu, which made the same bid 
and won a tie-breaking lottery. All the contracts were for computer-system-design contracts and involved no 
hardware or software. The Ministry of International Trade and Industry summoned executives from the companies to 
`` make sure they understood '' the concern about such practices, according to a government spokesman. `` These 
cases lead to the loss of the firms' social and international credibility, '' a ministry statement said. Japan's 
Fair Trade Commission has said it is considering investigating the bids for possible antitrust-law violations. 
`` We would like to apologize for having caused huge trouble, '' Fujitsu President Takuma Yamamoto, read from a 
prepared statement as he stood before a packed news conference at his company's downtown headquarters. The bids, 
he added, were `` contrary to common sense. '' NEC released a statement saying, `` We feel sorry for having 
caused trouble to society, '' a form of apology common in Japan for companies caught in embarrassing situations. 
Japanese companies have long had a reputation for sacrificing short-term profits to make a sale that may have 
long-term benefits. But the growing controversy comes as many practices historically accepted as normal here -- 
such as politicians accepting substantial gifts from businessmen or having extramarital affairs -- are coming 
under close ethical scrutiny. The fire is also fueled by growing international interest in Japanese behavior. 
So far there have been no public overseas complaints about the issue. But in one of the auctions in question, 
International Business Machines Corp. made a bid substantially higher than the Fujitsu offer, according to the 
municipality. The low-ball bids touch on issues central to the increasingly tense trade debate. Foreigners 
complain that they have limited access to government procurement in Japan, in part because Japanese companies 
unfairly undercut them. The U.S. government in recent years has accused Japanese companies of excessively 
slashing prices on semiconductors and supercomputers -- products Fujitsu and NEC make. Asked whether the bidding 
flap would hurt U.S.-Japan relations, Mr. Yamamoto said, `` this will be a minus factor. '' The `` one-yen '' 
controversy first came to a head last week when the city of Hiroshima announced that Fujitsu won a contract to 
design a computer system to map its waterworks. The city had expected to pay about 11 million yen $77,000, but 
Fujitsu essentially offered to do it for free. Then Wednesday, Fujitsu said it made a similar bid to win a 
library contract in Nagano prefecture two weeks earlier. It also said that in July, it bid 10,000 yen to design 
a system for the Saitama prefectural library, and two years ago, it bid one yen to plan the telecommunications 
system for Wakayama prefecture. The company said it has offered to withdraw its bids in Hiroshima and Nagano. 
The municipalities said they haven't decided whether to try to force the company to go through with the contracts. 
Fujitsu and NEC said they were still investigating, and that knowledge of more such bids could emerge. 
Mr. Yamamoto insisted that headquarters hadn't approved the bids, and that he didn't know about most of the cases 
until Wednesday. Other major Japanese computer companies contacted yesterday said they have never made such bids. 
`` One yen is not ethical, '' Michio Sasaki, an official at Keidanren, the Japan Federation of Economic 
Organizations, said. `` Profit may be low, but at least costs should be covered.
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    <desc id="2" len="7" off="0">Fujitsu</desc>
    <desc id="4" len="4" off="8">Ltd.</desc>
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  <rep id="edu.mit.discourse.rep.coref">
    <desc id="3082" len="3930" off="0">Fujitsu Ltd.|2888,2893,2908,2909,2913,2915,2919,2923,2931,2952,2959,3008,3020,3027,3031,3032,3038,3040,3046,3050,3051,3052,3058,3060</desc>
    <desc id="3083" len="4104" off="0">Fujitsu Ltd.'s top executive|2889,2892,2954,2956,2958,2962,3012,3066,3069</desc>
    <desc id="3084" len="125" off="34">the unusual step of publicly apologizing for his company's making bids of just one yen for several local government projects|2890</desc>
    <desc id="3085" len="20" off="54">publicly apologizing|2891</desc>
    <desc id="3086" len="2340" off="93">making bids of just one yen for several local government projects|2894,2901,2905,2943,2987</desc>
    <desc id="3087" len="2519" off="100">bids of just one yen|2895,2950,2961,2993</desc>
    <desc id="3088" len="4153" off="114">one yen|2896,2910,2925,3016,3047,3076</desc>
    <desc id="3089" len="33" off="126">several local government projects|2897</desc>
    <desc id="3090" len="16" off="134">local government|2898</desc>
    <desc id="3091" len="3771" off="167">computer rival NEC Corp.|2899,2922,2924,2929,2964,2966,3009,3062</desc>
    <desc id="3092" len="17" off="197">a written apology|2900</desc>
    <desc id="3093" len="31" off="263">business and government leaders|2902</desc>
    <desc id="3094" len="3645" off="303">Fujitsu and NEC|2903,2906,2939,2940,2945,3061,3063</desc>
    <desc id="3095" len="21" off="343">the broader statement|2904</desc>
    <desc id="3096" len="26" off="399">Japanese cutthroat pricing|2907</desc>
    <desc id="3097" len="34" off="492">three separate municipal contracts|2911</desc>
    <desc id="3098" len="71" off="534">the past two years|2912,2914</desc>
    <desc id="3099" len="24" off="617">10,000 yen|2916,2917</desc>
    <desc id="3100" len="16" off="647">another contract|2918</desc>
    <desc id="3101" len="3658" off="679">Japan|2920,2947,2970,2978,2999,3079</desc>
    <desc id="3102" len="8" off="693">computer|2921</desc>
    <desc id="3103" len="54" off="792">two separate public auctions since 1987|2926,2928</desc>
    <desc id="3104" len="4" off="827">1987|2927</desc>
    <desc id="3105" len="12" off="857">the contract|2930</desc>
    <desc id="3106" len="12" off="893">the same bid|2932</desc>
    <desc id="3107" len="22" off="915">a tie-breaking lottery|2933</desc>
    <desc id="3108" len="17" off="939">All the contracts|2934</desc>
    <desc id="3109" len="32" off="966">computer-system-design contracts|2935</desc>
    <desc id="3110" len="24" off="1012">no hardware or software|2936</desc>
    <desc id="3111" len="48" off="1038">The Ministry of International Trade and Industry|2937</desc>
    <desc id="3112" len="29" off="1096">executives from the companies|2938</desc>
    <desc id="3113" len="32" off="1162">the concern about such practices|2941</desc>
    <desc id="3114" len="22" off="1209">a government spokesman|2942</desc>
    <desc id="3115" len="59" off="1257">the loss of the firms' social and international credibility|2944</desc>
    <desc id="3116" len="20" off="1321">a ministry statement|2946</desc>
    <desc id="3117" len="42" off="1348">Japan's Fair Trade Commission|2948,2949</desc>
    <desc id="3118" len="33" off="1433">possible antitrust-law violations|2951</desc>
    <desc id="3119" len="12" off="1517">huge trouble|2953</desc>
    <desc id="3120" len="21" off="1579">a prepared statement|2955</desc>
    <desc id="3121" len="24" off="1620">a packed news conference|2957</desc>
    <desc id="3122" len="35" off="1648">his company's downtown headquarters|2960</desc>
    <desc id="3123" len="12" off="1726">common sense|2963</desc>
    <desc id="3124" len="160" off="1756">a statement|2965</desc>
    <desc id="3125" len="18" off="1812">trouble to society|2967</desc>
    <desc id="3126" len="7" off="1823">society|2968</desc>
    <desc id="3127" len="81" off="1835">a form of apology common in Japan for companies caught in embarrassing situations|2969</desc>
    <desc id="3128" len="43" off="1873">companies caught in embarrassing situations|2971</desc>
    <desc id="3129" len="978" off="1919">Japanese companies|2972,3000,3005</desc>
    <desc id="3130" len="12" off="1952">a reputation|2973</desc>
    <desc id="3131" len="18" off="1981">short-term profits|2974</desc>
    <desc id="3132" len="40" off="2008">a sale that may have long-term benefits|2975</desc>
    <desc id="3133" len="1096" off="2054">the growing controversy|2976,2984,3015</desc>
    <desc id="3134" len="51" off="2087">many practices historically accepted as normal here|2977</desc>
    <desc id="3135" len="11" off="2151">politicians|2979</desc>
    <desc id="3136" len="17" off="2173">substantial gifts|2980</desc>
    <desc id="3137" len="11" off="2196">businessmen|2981</desc>
    <desc id="3138" len="20" off="2218">extramarital affairs|2982</desc>
    <desc id="3139" len="22" off="2260">close ethical scrutiny|2983</desc>
    <desc id="3140" len="51" off="2311">growing international interest in Japanese behavior|2985</desc>
    <desc id="3141" len="45" off="2388">no public overseas complaints about the issue|2986</desc>
    <desc id="3142" len="31" off="2442">one of the auctions in question|2988</desc>
    <desc id="3143" len="37" off="2476">International Business Machines Corp.|2989</desc>
    <desc id="3144" len="49" off="2519">a bid substantially higher than the Fujitsu offer|2990</desc>
    <desc id="3145" len="17" off="2551">the Fujitsu offer|2991</desc>
    <desc id="3146" len="17" off="2583">the municipality|2992</desc>
    <desc id="3147" len="53" off="2629">issues central to the increasingly tense trade debate|2994</desc>
    <desc id="3148" len="35" off="2647">the increasingly tense trade debate|2995</desc>
    <desc id="3149" len="145" off="2684">Foreigners|2996,2997,3001</desc>
    <desc id="3150" len="49" off="2720">limited access to government procurement in Japan|2998</desc>
    <desc id="3151" len="19" off="2831">The U.S. government|3002</desc>
    <desc id="3152" len="4" off="2835">The U.S.|3003</desc>
    <desc id="3153" len="12" off="2854">recent years|3004</desc>
    <desc id="3154" len="43" off="2923">prices on semiconductors and supercomputers|3006</desc>
    <desc id="3155" len="66" off="2933">semiconductors and supercomputers|3007</desc>
    <desc id="3156" len="77" off="3015">the bidding flap|3010,3013</desc>
    <desc id="3157" len="20" off="3044">U.S.-Japan relations|3011</desc>
    <desc id="3158" len="14" off="3101">a minus factor|3014</desc>
    <desc id="3159" len="6" off="3165">a head|3017</desc>
    <desc id="3160" len="9" off="3172">last week|3018</desc>
    <desc id="3161" len="606" off="3187">the city of Hiroshima|3019,3023,3025,3054</desc>
    <desc id="3162" len="61" off="3236">a contract to design a computer system to map its waterworks|3021</desc>
    <desc id="3163" len="141" off="3258">a computer system to map its waterworks|3022,3028</desc>
    <desc id="3164" len="14" off="3283">its waterworks|3024</desc>
    <desc id="3165" len="28" off="3328">about 11 million yen|3026</desc>
    <desc id="3166" len="4" off="3404">free|3029</desc>
    <desc id="3167" len="742" off="3415">Wednesday|3030,3071</desc>
    <desc id="3168" len="13" off="3447">a similar bid|3033</desc>
    <desc id="3169" len="19" off="3468">a library contract|3034</desc>
    <desc id="3170" len="17" off="3491">Nagano prefecture|3036</desc>
    <desc id="3171" len="313" off="3491">Nagano|3035,3055</desc>
    <desc id="3172" len="17" off="3509">two weeks earlier|3037</desc>
    <desc id="3173" len="4" off="3549">July|3039</desc>
    <desc id="3174" len="10" off="3562">10,000 yen|3041</desc>
    <desc id="3175" len="8" off="3584">a system|3042</desc>
    <desc id="3176" len="31" off="3597">the Saitama prefectural library|3043</desc>
    <desc id="3177" len="7" off="3601">Saitama|3044</desc>
    <desc id="3178" len="13" off="3634">two years ago|3045</desc>
    <desc id="3179" len="30" off="3672">the telecommunications system|3048</desc>
    <desc id="3180" len="19" off="3707">Wakayama prefecture|3049</desc>
    <desc id="3181" len="482" off="3772">its bids|3053,3065,3068,3075</desc>
    <desc id="3182" len="28" off="3807">The municipalities|3056,3057</desc>
    <desc id="3183" len="13" off="3907">the contracts|3059</desc>
    <desc id="3184" len="27" off="3984">knowledge of more such bids|3064</desc>
    <desc id="3185" len="12" off="4054">headquarters|3067</desc>
    <desc id="3186" len="17" off="4123">most of the cases|3070</desc>
    <desc id="3187" len="69" off="4159">Other major Japanese computer companies|3072,3074</desc>
    <desc id="3188" len="9" off="4209">yesterday|3073</desc>
    <desc id="3189" len="73" off="4287">Michio Sasaki|3077</desc>
    <desc id="3190" len="43" off="4317">Keidanren|3078</desc>
    <desc id="3191" len="6" off="4386">Profit|3080</desc>
    <desc id="3192" len="5" off="4418">costs|3081</desc>
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